Burford Capital pursues dual legal strategy after Argentina wins USD 16.1 billion YPF case reversal

Burford Capital responded by filing for rehearing en banc, requesting that all active judges of the Second Circuit reconsider the panel decision. The Procuración del Tesoro characterized this motion as exceptional and unlikely to meet the strict admissibility standards required for full court review. Argentine officials argue the litigation funder lacks credible grounds to challenge the appellate ruling.

Simultaneously, Burford announced plans to initiate international arbitration at the International Centre for Settlement of Investment Disputes. The fund had previously evaluated this option in 2015 but abandoned it to pursue litigation in New York courts. The Procuración emphasized that Burford voluntarily waived the ICSID path a decade ago, undermining any current attempt to resurrect that forum. Government lawyers view the dual-track approach as a desperate effort lacking juridical foundation.

The litigation attracted significant attention during 2024 when Gerardo Mato, former HSBC global banking chief for the region, attempted to broker a settlement on Burford’s behalf. Mato secured a meeting with Chief of Cabinet Guillermo Francos on October 30, 2024, but Economy Minister Luis Caputo refused engagement until final judgment. Burford had proposed a payment plan involving bonds with extended maturities, emboldened by a July ruling ordering transfer of 51 percent of YPF shares, which Argentina also appealed.

The Milei administration adopted a proactive defense posture since taking office, monitoring all procedural developments across U.S. courts and international tribunals. The government’s victory in the Second Circuit represents a fundamental step toward consolidating Argentina’s position in global judicial forums, though separate issues with GDP warrant holders in UK courts remain outstanding as the IMF pushes for negotiated resolution.